BZ: Growth In Asian Economies Drive Crude Prices Higher
Booming Asian economies, including the Japanese economy, have driven crude oil prices higher. Growth in Asian economies boosted the confidence that the economic recovery would strengthen the demand for fuel.
Japan’s economy reported 4.6% growth in GDP for the three months ended December 31, surpassing the 3.5% median estimate of economists surveyed. Even the banks reported higher profits which resulted in the MSCI Asia Pacific Index rising to 116.5.
On the New York Mercantile Exchange, crude oil for March delivery rose by 1.5 percent to $75.23 a barrel. Even the euro grew stronger against dollar, which further increased the demand for commodities as an alternative investment.
The ProShares Ultra Short DJ-UBS Crude Oil (ETF) (NYSE: SCO) is trading at $15.42, while the PowerShares DB Oil Fund (ETF) (NYSE: DBO) is trading at $25.48. The ProShares Ultra Short DJ-UBS Crude Oil has a 52 week range of $12.25-$59.76, while the PowerShares DB Oil Fund has a 52 week range of $15.75-$28.46.
